Nestlé sales thrive in Latin America

Nicole Mezzasalma

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The company’s travel-retail division has reported an increase of 55% in value sales between 2005 and 2007

Nestlé International Travel Retail (NITR) has reported significant growth in Latin America between 2005 and 2007. Volume sales were up 27% in the period, while value sales grew by 55%. The company is now the second biggest supplier of confectionery in travel-retail to the continent, with 13.5% market share in 2007 compared with 12.4% in 2006. It is the number one supplier in Venezuela and has moved up from fifth to third in Brazil.

NITR head of sales Ian Robertshaw said: “We have increased our distribution and the available assortment of products in the Americas. This has been supported by strong promotional and marketing activity in key markets and airports, particularly with InterBaires, Dufry Brazil, London Supply, Capriles Hermanos in Venezuela and DFM in Mexico. At the same, time, we continue to focus at all times on category development initiatives.”

In terms of brands, KitKat is NITR’s best-seller. “In 2005, KitKat represented 19% of sales with Brasif—last year this increased to 45%,” explained Robertshaw. According to him, new accounts in Latin America have seen sales by volume and value double, particularly on the Uruguay border with Pramsa, Paraguay/Brazil border with Shopping China and Argentina/Brazil border with London Supply.